margins SALES at Primark are up 20 per cent in its current financial year.

Parent company Associated British Foods, which also owns brands such as Twinings tea and Kingsmill bread, said like-for-like sales in the 40 weeks to June 20 were "excellent."

The chain's value-for-money fashion lines have continued to attract shoppers during recession.

In the last 16 weeks sales at Primark, which has 14 stores in Scotland, were up 21 per cent. The company said: "This reflected the increase in retail selling space and excellent like-for-like sales growth despite trading conditions in UK clothing retailing remaining difficult.

"At June 20, 2009, we were trading from 190 stores with 5.7million sq ft of selling space."

However, there was tougher trading for AB Food's Allied Bakeries, which saw volumes impacted by the loss of low margin own-label and some branded bread business. In spite of that, profits were still ahead in the third quarter due to improvements in baking operations.

Patak's and Blue Dragon delivered double digit revenue growth but margins were impacted by the higher cost of imports.

Everyday tea continued to have strong consumer demand in the UK but speciality teas fell back.

Sugar pricing continues to be competitive in the UK retail market and Silver Spoon's were below last year's level. Total trading revenues for the whole group were up 19 per cent in the 40 weeks.

The company said: "Trading for the group since the half year remains on track to deliver progress in operating profit for the second half.

"We still expect little change in earnings for the full year as the increase in operating profit will be broadly offset by a higher interest charge."